G+D reports stable results as secunet biometrics boost group earnings
Giesecke+Devrient (G+D), parent company of biometric provider Veridos and secunet as well as a provider of digital identity solutions and ID documents itself, reports 2020 sales of €2.3 billion (US$2.7 billion), nearly on par with the previous year. Secunet’s biometric border control boosted the group’s results as European countries prepare for the launch of the regional Entry/Exit System.
Cost management and increasing margins pushed G+D’s operating result up 13 percent to €153 million ($179 million), and incoming orders actually grew by 6 percent during the year to €2.4 billion ($2.8 billion). EBIT was roughly even with the prior year at €43 million ($50 million)
Veridos booked revenues slightly down from 2019, at €228 million ($267 million), while secunet booked €286 million ($335 million), a 26 percent increase from €227 million ($266 million) the year before.
Close to 80 percent of the world’s central banks are working on introducing digital currencies, and G+D is carrying out what it says are the first pilot projects in this area.
“Even in light of crisis, we have proved to be a reliable partner for our customers. In a challenging financial year 2020, we managed the impact of the global Corona pandemic on our business very well while keeping our sights on further growth,” emphasizes Ralf Wintergerst, chairman of the Management Board and Group CEO of Giesecke+Devrient. “Last year, we set the right development targets for G+D and invested heavily in our digital portfolio. In particular, we were able to successfully further expand the future fields of digital payment and encryption technology.”
Since the end of 2020, G+D has launched an access control token with fingerprint biometrics for enterprise customers.
The company’s 2021 guidance is for similar revenues and earnings to 2020, as G+D reports a solid backlog of orders to be filled and a strong position entering the year, but acknowledges uncertainty related to the ongoing pandemic.
In an article within G+D’s annual report, Veridos head of Product Management Xavier Prost notes that each person may have “several dozen digital identities.” G+D is working with Bundesdruckerei and Vodafone to bring the online digital ID functions of identity cards to smartphones, which the company believes will enable a range of mobile consumer transactions and processes by the end of 2021.
The company also notes its experience in deploying more than 400 automated border control systems, many of them with biometrics, and IATA’s forecast that air travel will reach its pre-pandemic level by 2024. Secunet has already won a biometric airport gates contract in Estonia this year.